No cause for concern over Penang’s financial status, assures CM

FOLLOWING concerns raised over Penang’s financial status, Chief Minister, Chow Kon Yeow today assured that the situation was stable and there was no cause for concern.

Chow (Pakatan Harapan - Padang Kota) said that as of April 30, this year, the revenue earned by the state was RM258.72 million whereas the expenditure over the same period was RM235.19 million.

There is a surplus of RM23.53 million, Chow told the state legislative assembly while wrapping up the motion of thanks on the Yang di - Pertua Negri's opening address.

Answering Goh Choon Aik (Pakatan Harapan - Bukit Tambun), Chow said that the state is, however, expecting a fiscal deficit Budget this year of RM 514.52 million because 60 percent of expenditure was incurred for the well being of the people.

However, Chow said that the state wants to be prudent, hence its undertaking of strategic inhouse measures and cost savings to reduce the deficit quantum.

"Penang will also diversify its revenue base from reviewing its land tax scheduled rates and offering rebates to those who settle their arrears," said Chow.

There is also the introduction of an online payment system called PgLAND, which will allow the public to save time and settle their dues online.

Chow also said that the state treasury and selected officials would be sent to undergo federal courses on how to better manage allocations and spending.

Penang will also receive up to RM1.050 million from the federal government for the implementation of the ecological fiscal transfer for biodiversity conservation initiative.

When debating in the House earlier, former Chief Minister Lim Guan Eng (Pakatan Harapan - Air Putih) opined that open-tenders should be done consistently as it can earn more revenue for the state.

He also singled out the poor financial performance of state-linked companies under the Penang Water Services Corporation (PBAPP) and Penang Development Corporation.

Penang MCA has also issued a statement seeking for a detailed statement on the state finances and on how the state plans to increase its revenue.

Chow also revealed that the state has no plans to amend its constitution on how many terms a chief minister can serve.

For now it remains for two terms after it was amended in 2019. - May 30, 2004.